Investment in Ynni Anafon Energy Cyf.

Our share offer was launched by the naturalist and broadcaster, Iolo Williams, at a festival in Abergwyngregyn, the Aber Dabba Doo, on 13 September 2014 which attracted approximately 1,000 visitors to the village. 

The opening share offer had raised over £325,000 before the closing date of 30 November 2014. The significance of this date was that we had set ourselves a target of £300,000 to be raised by then before we could commit to building the Anafon Hydro. As there was still interest in buying shares, we extended the offer period to April 2014 by which time we had raised £450,900. Every additional pound raised in the share offer reduced the amount we had to borrow from the bank in expensive loans.  In addition to the substantial tax incentives then available to investors through HMRC’s Enterprise Investment Schemes, we have been able to pay them 5% p.a. on their investment each year since 2017-18 when payments to shareholders were scheduled to commence.

Two classes of shares were issued: A-Shares reserved for investors living within the Parish of Abergwyngregyn and B-Shares issued to the wider public in Wales and beyond. The Rules of the Society state that there will be up to 9 Directors, up to 4 be elected by A-Shareholders, up to 3 by B-Share holders and 2 nominated by ARC.

All shareholders are Members of YAE with an entitlement to vote at the AGM. However, shareholders will have only a single vote irrespective of the number of shares they hold.

In 2020, The Board of YAE decided to return the capital invested in the Society by shareholders at the rate of one fifteenth of their holding per annum with the aim of returning all invested capital by 2035, the year our Feed in Tariff terminates. When this happens, the Society’s income will depend only on the sale of electricity under our Power Purchase Agreements and so will be much reduced. The reason for the Board’s decision was the need to reduce recurrent expenditure as much as possible by that date to ensure the Society’s profits are sufficient to continue annual donations to Dŵr Anafon for community benefit.  

On or before that date, each of our current shareholders and/or members of the communities of Abergwyngregyn and Llanfairfechan will be invited to purchase new shares in the Society for a nominal £1. The new shares will not provide any financial return but these shareholders will then own the Society into the future.

The Anafon Hydro was the first large-scale, community-owned hydroelectric generating plant in Northwest Wales and we thank our shareholders for their confidence that we would be able to deliver the project. With your help, we have been able to harness the waters of the Afon Anafon to generate renewable electricity, to support local communities and community projects and to provide you, our investors, with a financial return on your investment. You have helped to promote community renewable energy which has the potential to reduce significantly our reliance on fossil fuels and nuclear generation. We hope you feel proud to have been part of this pioneering community enterprise, of your support for renewable energy and of your contribution to a greener and more sustainable future.